WHO IS CENTRAL BANK OF THE RUSSIAN FEDERATION?

"Give me control of a nation's money and I care not who makes the laws" — Mayer Amschel Rothschild

In the end of March, at its own congress, the Association of Russian Banks (ARB) accused the Bank of Russia of favoritism, pointing out that many decisions are taken behind the scenes and in the interests of a small group of individuals. Such accusations point to the fact that there is a huge number of unresolved claims from the Russian credit institutions for the activities of the mega-regulator. In connection with the heated situation in the banking sector of Russia, we decided to figure out what the Central Bank of the Russian Federation is and what its powers really are.

This analysis is based on freely accessible information. As they say, nothing personal, just facts.

So,

The history of the Central Bank of Russia (Bank of Russia) began in 1990.

On July 13, 1990 the State Bank of the RSFSR was established based on the Russian Republican Bank of the State Bank of the USSR, as a property of the RSFSR and accountable to the Supreme Council of the RSFSR.

On August 16, 1990 by decree of the Presidium of the Supreme Council of the RSFSR dating 16.08.1990 N 146-1 the property, as well as assets and liabilities of other state-owned banks were transferred to the balance and operational management of the State Bank of the RSFSR and its regional offices declared property of the RSFSR.

And on December 2, 1990, then the Chairman of the Supreme Committee of the RSFSR B.N. Yeltsin signed the law of the RSFSR No. 394-I "On the Central Bank of the RSFSR (Bank of Russia)".

Let's consider some of its provisions:

Article 1. Central Bank of the RSFSR (Bank of Russia)

Central Bank of the RSFSR (Hereinafter referred to in the text of this law as the Bank of Russia) is the main Bank of the Russian Soviet Federative Socialist Republic and is its property.

The Bank of Russia is established on the basis of this Law and is accountable to the Supreme Council of the RSFSR.

The Bank of Russia is independent of the administrative and executive bodies of state power. The Bank of Russia has the right to apply to the state arbitration of the RSFSR with a request to invalidate the acts of these bodies aimed at unlawful interference with the activities of the Bank of Russia.

Article 2. Bank of Russia - legal entity

The Government of the RSFSR is not liable for the obligations of the Bank of Russia, just as the Bank of Russia is not liable for the obligations of the Government of the RSFSR, except for cases when the Bank of Russia assumes such obligations.

Article 9. Estimates of expenses and procedure for distribution of profits of the Bank of Russia

The Bank of Russia and its institutions are exempted from all types of state and local taxes, fees and state fees.

Now let's consider the Charter of the Central Bank of the RSFSR (Bank of Russia) adopted by the Presidium of the Supreme Council of the RSFSR with amends No. 3860-1 of 10.11.1992, No. 2288 of 24.12.1993.

Article 18.

Operations and transactions of the Bank of Russia

The Bank of Russia has the right to grant a loan to the Ministry of Finance of the RSFSR on general terms for no more than six months to cover the gaps between the annual current budget revenues and expenditures, as well as the internal public debt of the RSFSR.

The Bank of Russia, in the limits established by the Supreme Council of the RSFSR, may purchase from the Ministry of Finance of the RSFSR state securities at their initial placement or place them on commission terms.

Article 26.

Organization of the Bank of Russia

The Bank of Russia independently organizes its activities on the basis of the Basic Principles of Monetary Policy approved by the Supreme Council of the RSFSR and taking into account other decisions of the Supreme Council of the RSFSR and its Presidium.

Article 35.

Report of the Bank of Russia

The Bank of Russia annually submits a report for approval to the Supreme Council of the RSFSR no later than May 15 as of January 1. The report is preliminary considered by the Presidium of the Supreme Council of the RSFSR.

The Supreme Council of the RSFSR determines an independent audit organization for the annual audit of the balance and operations on the accounts of the Bank of Russia.

Everything seems to be all right. According to this law, the new Central Bank of the RSFSR, created on the basis of the State Republic Bank of the USSR, is owned by the republic of the RSFSR, manages the property of the RSFSR, is accountable to the Supreme Council of the RSFSR and conducts a credit and monetary policy dependent on the owner. In addition, it is also exempt from all types of taxes to its own state.

Then the fun begins...

From December 25, 1993, on the day the Constitution of the Russian Federation, Law No. 394-I "On the Central Bank of the RSFSR (Bank of Russia)" was adopted, small but significant changes started occurring.

First, all phrases involving "Supreme Council of the RSFSR" were deleted, which eliminated all accountability of the newly-created Bank of Russia to the state authorities.

Then, part of the provisions of the law was abolished (!!!) due to the entry into force of the new Constitution of the Russian Federation, which further alienated the activities of the Bank of Russia from the State.

We remind you that the Bank of Russia was established on a state base, and its owner was the RSFSR in the USSR. The newly created Russian Federation called itself the successor of the USSR, which lead to the transfer of all property of the Soviet Union, including the Central Bank of the RSFSR. This is eloquently mentioned in the unchanged first part of Article 1 of Law No. 394-I "On the Central Bank of the RSFSR (Bank of Russia)" in the version of December 25, 1993.

In the Constitution of the Russian Federation of 1993, Article 75 states:

The monetary unit in the Russian Federation is the ruble. Monetary emission is carried out exclusively by the Central Bank of the Russian Federation. The introduction and issue of other monetary units are prohibited in the Russian Federation.

Protection and ensuring the stability of the ruble is the main function of the Central Bank of the Russian Federation, which it exercises independently of other public authorities.

It turns out that the RF Constitution of December 25, 1993 specifies the Central Bank of the Russian Federation, and the law on the Central Bank specifies a completely different bank - the Central Bank of the RSFSR.

Let’s continue...

On April 26, 1995 Federal Law No. 65-FZ "On Amendments and Additions to the Law of the RSFSR" On the Central Bank of the RSFSR (Bank of Russia) " radical changes were made:

(Excerpts from articles of the law)

Chapter I. General Provisions

Article 1. The status, tasks, functions, powers and principles of the organization and activities of the Central Bank of the Russian Federation (Bank of Russia) are determined by the Constitution of the Russian Federation, this Federal Law and other federal laws.

This article mentions a completely different name for the Bank of Russia. There is no indication of belonging to state or private property.

Article 2. The Bank of Russia is not registered with the tax authorities.

That is, the newly-created Central Bank of the Russian Federation is a non-resident in the Russian Federation (it may be a foreign institution), and therefore has no right to pay tax deductions to the state treasury.

Chapter XV. Audit of the Bank of Russia

Article 4. From the date of entry into force of this Federal Law the following become invalid:

.......

The Charter of the Central Bank of the RSFSR (Bank of Russia) (Gazette of the Congress of People's Deputies of the RSFSR and the Supreme Council of the RSFSR, 1991, No. 29, Article 1012).

That is, Federal Law No. 65-FZ of April 26, 1995 (Russian Federation !!!) liquidates the Charter of the Central Bank of the RSFSR!

The Charter of the Central Bank of the RSFSR (Bank of Russia) states:

Article 37.

The Bank of Russia liquidation order

The Bank of Russia can be liquidated in case of adoption of the corresponding law of the RSFSR. The procedure and terms for conducting liquidation are established by the Presidium of the Supreme Council of the RSFSR or its authorized body.

After reading this law, it seems that the Central Bank of the RSFSR and the Central Bank of the Russian Federation are two completely different entities in terms of status and organization.

Then...

The Charter of the Central Bank of the RSFSR (Bank of Russia)

Article 18.

.......

The Bank of Russia HAS THE RIGHT TO GRANT A LOAN TO THE MINISTRY OF FINANCE OF THE RSFSR on general terms for a period of not more than six months to cover the gaps between the annual current budget revenues and expenditures, as well as the internal public debt of the RSFSR.

The Bank of Russia is NOT TO PROVIDE LOANS TO THE GOVERNMENT OF THE RUSSIAN FEDERATION for financing the budget deficit, to buy state securities at their primary placement, except for cases when this is provided for by the federal law on the federal budget.

The Bank of Russia IS NOT TO PROVIDE LOANS TO FINANCE THE DEFICITS OF THE BUDGETS OF THE SUBJECTS OF THE RUSSIAN FEDERATION, local budgets and budgets of state extra-budgetary funds.

How can the State Central Bank of the RSFSR cease to finance the state, whose property is it? Or maybe it isn't the State Bank of the RSFSR? Who transferred it into private hands, and who was engaged in theft of state property of the RSFSR? Or, maybe it's another bank under a new name - the Central Bank of Russia?

Decree of the Presidium of the Supreme Council of the RSFSR of June 24, 1991 N 1483-1 "The approval of the Charter of the Central Bank of the RSFSR (Bank of Russia) was signed by the Chairman of the Supreme Council of the RSFSR BN Yeltsin.

And Federal Law No. 65-FZ of 26 April 1995 "On Amendments and Additions to the Law of the RSFSR "On the Central Bank of the RSFSR (Bank of Russia)" was signed, ATTENTION!!! By the President of the Russian Federation, Boris Yeltsin.

What kind of powers should a person wield to be allowed to sign documents of two different states? Or is that a fact of concealed fraudulent actions to steal state property and misappropriation of powers?

We are not going to speculate, we shall only provide facts on which pose legitimate questions that require answers.

Let’s move forward...

According to paragraph 1 of Article 75 of the Constitution of the Russian Federation, the ruble is the monetary unit in the Russian Federation. Note, not the Russian ruble, but simply the ruble. When inspecting any bank note, you can see only one inscription of ownership on this paper - NOTE OF THE BANK OF RUSSIA. The Soviet ruble indicated that it was a STATE TREASURY NOTE and is secured by gold, precious metals and other assets of the State Bank. The "Russian" ruble does not bear any such things and is tied only to the Central Bank of the Russian Federation, that is, in fact, is its commodity, nothing more. And consequently it only circulates within the territory under the control of the Central Bank of the Russian Federation.

Hence a natural question arises. Since the Russian Federation is integrated into the world economy, there must be mechanisms for converting this "Russian" ruble or other forms of interstate settlements.

If we pin point any period, even today, we will see that the Central Bank of the Russian Federation conducts all international settlements in rubles of the State Bank of the USSR (Soviet rubles). For example, the rate of the Soviet ruble against the US dollar as of March 2017 is almost 56 kopecks for 1 dollar.

What could this mean? Most likely, the fact that the entire financial world outside the "former" USSR recognizes only the Soviet ruble, and only it can be quoted. The financial foreign world knows nothing about the "Russian" ruble, and even if it does, it does not work with it for a simple reason - the "Russian" ruble is NOT SECURE PAPER - an ordinary coupon for some internal dealings within some society, for example, the Russian Federation.

By decree of the Presidium of the Supreme Council of the RSFSR N 2066-1 of December 20, 1991 "On the implementation of the resolution of the Supreme Council of the RSFSR "On Financial and Credit Support for Economic Reform and Reorganization of the Banking System in the RSFSR" and on the State Bank of the USSR" The State Bank of the USSR was abolished, and all its assets and liabilities, as well as property on the territory of the RSFSR, were transferred to the Central Bank of the RSFSR (Bank of Russia).

We have already discussed the "transformation" of the Central Bank of the RSFSR into the Central Bank of Russia. But...

Since the world still deals in Rubles of the State Bank of the USSR instead of the "Russian" ruble, sothe former was not abolished, and the Soviet ruble is still circulating EVERYWHERE, except for the Russian Federation. Otherwise, on the website of the Central Bank of Russia it would be written - "Official Courses of the Central Bank of the RSFSR" or "Official Courses of the Central Bank of the Russian Federation".

To the above-mentioned, we can also add that according to Articles 3 and 4 of Federal Law No. 86-FZ of July 10, 2002, the Central Bank of the Russian Federation does not have the right to conduct international transactions. Link http://base.garant.ru/12127405/

Article 4

12) organizes and carries out currency regulation and currency control in accordance with the legislation of the Russian Federation;

13) determines the procedure for making transactions with international organizations, foreign states, as well as with legal entities and individuals;

The central bank of the Russian Federation can only determine the order and exercise control over currency transactions. Hence the question. Who has the right, and who conducts interstate transactions?

Finally...

Article 9 of the RSFSR Law No. 394-I of December 2, 1990 "On the Central Bank of the RSFSR (Bank of Russia)" states that the Bank of Russia and its institutions are exempted from paying all types of state and local taxes, fees and state fees.

Also, Article 2 of Federal Law No. 65-FZ of April 26, 1995, "On Amendments and Additions to the Law of the RSFSR" On the Central Bank of the RSFSR (Bank of Russia)" states that the Bank of Russia is not registered with the tax authorities.

But according to the extract of the Unified State Register of Legal Entities, the information on the registration of a legal entity with the tax authority states that the Central Bank of the Russian Federation was registered as a taxpayer on May 8, 2003.

Based on the above-mentioned, it becomes clear that the Central Bank of the RSFSR was registered with the tax authorities and at the same time it is exempt from all types of taxes. But the Central Bank of Russia was forbidden even to register. Nevertheless, under certain circumstances, it still had to be registered, which was done on May 8, 2003 (8 years after its creation).

Guess, you have another question: How can a state bank not be registered anywhere? Or is it a non-governmental bank? Then whose is it?

And now questions to lawyers:

Question 1: Is the Central Bank of the Russian Federation a legitimate financial body of Russia and assignee of the State Bank of the USSR?

We will not re-enumerate the above-mentioned, let's just say that there are many more legal inconsistencies than we presented. And they can all interrupt the succession.

Question 2: How can the Central Bank of the RSFSR obey the new Constitution of the Russian Federation at that time, as it specifies a completely different organization (Central Bank of the Russian Federation)?

The Central Bank of the RSFSR existed legally until April 26, 1995, i.e. A YEAR AND A HALF MORE after the adoption of the Constitution of the Russian Federation, until the next edition of the law of the RSFSR No. 394-1 "On the Central Bank of the RSFSR (Bank of Russia)", which was "renamed" in Federal Law No. 394-1 dating April 1995 "On the Central Bank of the Russian Federation (Bank of Russia)".

Neither Law No. 65-FZ of April 26, 1995, nor the amends of Law No. 394-I of December 2, 1990, specifies the renaming of the Central Bank of the RSFSR into the Central Bank of the Russian Federation. Also there is no Decree on the establishment of the Central Bank of the Russian Federation.

Question 3: Does the President of the Russian Federation have the power to issue and sign documents for organizations with the status of the RSFSR and part of the USSR?

Bear in mind that the liquidation of the Central Bank of the RSFSR in accordance with its Charter can only be adopted if relevant to the law of the RSFSR, but not that of the Russian Federation. Also, it’s only the Supreme Council of the RSFSR that can change the status of the Central Bank of the RSFSR.

Question 4: What happened to the state property of the RSFSR in the form of the Central Bank?

Law No. 394-I of December 2, 1990 specifies that the Central Bank of the RSFSR is in its ownership. In Federal Law No. 65-FZ of April 26, 1995, all information about property rights of the RSFSR magically disappeared, besides it is not specified whether the Central Bank has become the property of the Russian Federation. Consequently, the state property of the RSFSR was transferred to private or foreign ownership.

Question 5: How can the Central Bank of the Russian Federation, which manages all external and internal financial flows of the country, not be registered with the tax authorities? Why wasn't the main financial body of Russia registered for a period of 8 years after its establishment?

According to the official extract of the Unified State Register of Legal Entities for the Central Bank of the Russian Federation, information on the registration of a legal entity with the tax authority states that the Central Bank of the Russian Federation was registered as a taxpayer on May 8, 2003.

Question 6: Why does the Central Bank operate on the external financial market at the rates of the State Bank of the USSR? If the Central Bank of the Russian Federation does not have the right to make inter-state transactions, who has the right and who conducts them?

The central bank has the right to work only with its own goods - the "Russian" ruble, and only on the territory of the Russian Federation. In the financial world, it only has the right to take into account and determine the procedure for making settlements.

Question 7: Aren't all the above-mentioned actions to amend the law "On the Central Bank ..." an act of concealment of theft of state property, as well as misappropriation of power and assets of the state Central Bank of the RSFSR by the Central Bank of the Russian Federation (private organization)?